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Q. Use the classical IS-LM model for two countries to analyze the idea that the United States became a relatively more attractive place to invest in the early 1980s. Assume that, because of more favorable tax laws, the user cost of capital falls in the domestic country and that, because of the LDC debt crisis, the expected future marginal product of capital falls in the foreign country. Suppose the effects from the declining domestic user cost dominates, show that these changes lead to an appreciation of the home country's real exchange rate and a drop in the domestic country's net exports. Assume no change in current productivity or current labor supply in either country. What is happening to financial flows? Why?
Describe what would happen if an outside agency determined the prices eBay could charge.
they have the same demand curve for computer services. Use a graph to illustrate the overall value of computing services to the consumer. What does this imply about the profit maximizing price HAL can charge for the computer hardware.
Assume that the industry you wrote about in Assignment 3 wants to expand and has to make some longterm capital budgeting decisions. Now the industry is confronted with government regulations to oversee the merger.
Determine the minimum average cost of the firm with these different order sizes.
Compare and contrast your chosen websites: which website is more likely to be successful than the other, and why and How well does the website personalise the experience for users?
the top ten percentile cutoff was 95 points. a. What is the standard deviation for the class? b. What percentile did you score in?
You have opened your own word-processingservice. You bought a personal computer, and paid $5,000 for it.However, due to the cost changes in the computer industry, thecurrent price of an equivalent machine is $2,500.
The company depreciates its assets on a straight-line basis and has a marginal tax rate of 40 percent. The firm's cost of capital is 14 percent. Based on the internal rate of return criterion, should this machine be purchased?
Discuss the necessary conditions to make price discrimination work and the best practices to use price discrimination to maximize profits while avoiding price wars.
bananas can be produced. Between these points. Illustrate what is the opportunity cost of producing a pound of apples.
Does the patent system encourage duplicative efforts solely for the chance to be first.
Compare the automotive manufacturing industry today to the automotive manufacturing industry of the 1950's. Applying the economics of price and output, what is the difference between the industry of today and that of the 1950's. What type of mark..
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